Processa Pharmaceuticals Announces Closing of $7.0 Million Public Offering
Processa Pharmaceuticals, Inc. (Nasdaq: PCSA) has closed a public offering of 1,555,555 shares of common stock and common warrants, raising $7.0 million in gross proceeds. The offering price per share was $4.50, with the common warrants having an exercise price of $4.50 per share and a term of five years. H.C. Wainwright & Co., LLC acted as the exclusive placement agent for the offering. The registration statement on Form S-1 relating to the offering was declared effective by the SEC on January 26, 2024.
The recent public offering by Processa Pharmaceuticals represents a notable capital infusion for the company, projected at $7.0 million in gross proceeds . This capital raise is significant as it provides the necessary funds for the company to continue the development of its next-generation chemotherapeutic drugs. The exercise price of the common warrants being equal to the offering price indicates a neutral stance on immediate future stock price volatility, as investors are neither given a discount nor charged a premium on potential future purchases of stock.
The capital is expected to be directed towards clinical trials and R&D, which are crucial for pipeline progression. Investors should monitor the burn rate and subsequent milestones, as these will be critical indicators of the company's ability to manage the new capital effectively and advance its product portfolio. The timing of the warrant exercise will also be a key factor to watch, as it could provide additional capital influx or signal market confidence in the company's valuation.
Processa Pharmaceuticals' offering was conducted under a Form S-1 registration statement , which was declared effective by the SEC. This form is commonly used for new stock issuances by public companies and requires comprehensive disclosure of financial and business information. Compliance with SEC regulations is crucial to avoid legal pitfalls and ensure investor confidence.
The fact that the offering was made only by means of a prospectus forming part of the effective registration statement indicates adherence to securities laws, which is essential to prevent legal challenges. Potential investors should review the final prospectus filed with the SEC to understand the risks and specifics of the offering. The absence of an offer or sale in jurisdictions where it would be unlawful ensures the company's observance of state and federal securities laws.
The biopharmaceutical sector is highly competitive, with numerous companies striving to innovate in the oncology space. Processa Pharmaceuticals' focus on developing chemotherapeutic agents that improve efficacy and safety positions it within a critical segment of the market. However, the success of such offerings and subsequent stock performance depends on the company's ability to meet clinical milestones and demonstrate drug efficacy.
Investor sentiment in the biopharmaceutical industry is often influenced by clinical trial data and regulatory approvals. As such, the market will be closely monitoring Processa's use of the raised capital for its clinical programs. The success of these programs can significantly impact the company's market valuation and investor returns. It is also worth noting that the involvement of a well-regarded placement agent like H.C. Wainwright & Co. can lend credibility to the offering and potentially attract more investors.
02/01/2024 - 04:22 PM
HANOVER, MD, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Processa Pharmaceuticals, Inc. (Nasdaq: PCSA) (“Processa” or the “Company”), a clinical-stage pharmaceutical company focused on developing the next generation of chemotherapeutic drugs to improve the efficacy and safety for more patients suffering from cancer, announces the closing of its previously announced public offering consisting of 1,555,555 shares of common stock (or pre-funded warrants in lieu thereof) and common warrants to purchase up to 1,555,555 shares of its common stock, at a combined public offering price per share of common stock (or per pre-funded warrants in lieu thereof) and accompanying common warrant of $4.50 . The closing occurred on January 30, 2024.
The common warrants have an exercise price of $4.50 per share, are immediately exercisable upon issuance and have a term of five years after their original issuance date. The gross proceeds from the offering, before deducting placement agent fees and other offering expenses payable by the Company, were $7.0 million (excluding any proceeds that may be received upon the exercise of the common warrants).
H.C. Wainwright & Co., LLC acted as the exclusive placement agent for the offering.
A registration statement on Form S-1 (File No. 333-276308) relating to the offering was declared effective by the Securities and Exchange Commission (the "SEC") on January 26, 2024. The offering was made only by means of a prospectus forming part of the effective registration statement relating to the offering. A final prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus may be obtained on the SEC’s website at http://www.sec.gov placements@hcwco.com
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Processa Pharmaceuticals, Inc.
Processa is a clinical stage pharmaceutical company focused on developing the Next Generation Chemotherapy (NGC) drugs to improve the safety and efficacy of cancer treatment. By combining Processa’s novel oncology pipeline with proven cancer-killing active molecules and Processa’s Regulatory Science Approach as well as experience in defining Optimal Dosage Regimens for FDA approvals, Processa not only will be providing better therapy options to cancer patients but also increase the probability of FDA approval for its Next Generation Chemotherapy (NGC) drugs following an efficient path to approval. The company’s approach to drug development, based on more than 30 years of drug development experience, uses its proven Regulatory Science Approach, including the determination of the Optimal Dosage Regimen using the principles of the FDA’s Project Optimus Oncology initiative. Processa’s NGC drugs are modifications of existing FDA-approved oncology drugs resulting in an alteration of the metabolism and/or distribution of these FDA-approved drugs while maintaining the existing mechanisms of killing the cancer cells. The advantages of Processa’s NGCs are expected to include fewer patients experiencing side effects that lead to dose discontinuation, more significant cancer response, and a greater number of patients —- over 250,000 patients treated each year for each drug —— who will benefit from each NGC drug. Currently under development are three next generation chemotherapy oncology treatments: Next Generation Capecitabine (PCS6422 and capecitabine to treat breast, metastatic colorectal, gastrointestinal, pancreatic, and other cancers), Next Generation Gemcitabine (PCS3117 to treat pancreatic, lung, ovarian, breast, and other cancers), and Next Generation Irinotecan (PCS11T to treat lung, colorectal, gastrointestinal, pancreatic, and other cancers).
For more information, visit our website at www.processapharma.com
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements", including with respect to the public offering. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements in this statement are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include, but are not limited to, those risks and uncertainties related to market and other conditions as well as those set forth in the Company's latest Annual Report on Form 10-K, quarterly report on Form 10-Q, registration statement on Form S-1 filed with the SEC and the preliminary prospectus included therein, and other filings made by the Company from time to time with the SEC. Copies of the registration statement can be accessed by visiting the SEC website at www.sec.gov
For More Information:
Investors: ir@processapharma.com
Company Contact: plin@processapharma.com
The ticker symbol for Processa Pharmaceuticals, Inc. is PCSA.
The public offering consisted of 1,555,555 shares of common stock.
The gross proceeds from the offering were $7.0 million.
The offering price per share was $4.50.
H.C. Wainwright & Co., LLC acted as the exclusive placement agent for the offering.
